U.S. Federal Reserve Sticks To 25 BPS Hike; More Such To Come

The U.S. Federal Reserve has announced an interest rate hike of 25 basis points (bps) which remains analogous to the previous month. This comes after a series of hikes that were formally reported throughout the year ranging from 25 to 75 basis points. Jerome Powell, the Chair of the Federal Reserve, had previously promised a slowdown in rate hikes for March of this year — therefore meeting market expectations. The cryptocurrency market has responded favorably to the announcement as most major indices are currently trading in the green at the time of writing.

Rate Hikes Over The Months

The Fed’s latest 25 bps increase remains consistent with the one announced last month, thereby putting an end to the lingering conundrum and debate surrounding the possibility of a 50 bps rate hike. While many also speculated on a “no hike” or “zero hike” following the banking crisis which shook the global market, the Fed seems to be sticking to its plan of raising interest rates for the foreseeable future.

BREAKING – FED hikes interest rates by 25bps!

No pause, but continuation and he’ll probably say that it will stick for longer as inflation needs to come down.

Most neutral outcome.

— Michaël van de Poppe (@CryptoMichNL) March 22, 2023

The Federal Open Market Committee (FOMC) raised interest rates by 0.25% in March 2022, stamping the first rise since 2018. In its policy meeting in March, it anticipated six more increases, all of which have subsequently been made. In May, the Federal Reserve announced the first interest rate increase — by 0.5 percentage points — a move first witnessed after the year 2000. This came as a part of the Fed’s policy of economic tightening and has been in continuation until now.

In minutes following the announcement, Bitcoin’s price climbed to $28,740 from $28,450, whereas the altcoin with the second largest market share, Ethereum, increased by 0.50% as it hit $1,807 at the time of writing.

This is breaking news and is frequently being updated.

Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now – he has seen it all.

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